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rocketpig said:
MS needs to make money and ride out the generation. Doing that, they should end up with at least 30m consoles sold, probably more in the 35m range. They should also come close to breaking even on the console overall and it will give them a good foothold going into 2010 with a new console.

I  think you are making a lot of sense.

MS Entertainment Division needs  to show MS  it is a viable business, and  360 needs to  show consumers it offers to the full range of customers.  Sticking with 360 as the years go by and as they can drop the retail price will let other market segments afford to experiment with 360 purchases.

The 360 *is* the Gamecube of this generation, and that shouldn't be considered a bad thing (hey, look what happened to 'two Gamecubes duct taped together...").  The real question at this point is how much wisdom does MS have about the long term future... 

 

Having said that, I think 2010 is a little early...